Colorado Judge Halts Kroger-Albertsons Grocery Megamerger in Surprising Move

A Colorado judge has temporarily halted the proposed $24.6 billion merger between the nation’s two largest supermarket chains before an upcoming antitrust trial scheduled for September.

Colorado Attorney General Phil Weiser sued Kroger, which owns King Soopers and City Market, and Albertsons, which owns Safeway, alleging the merger breaches state antitrust laws and could negatively affect consumers, workers, and suppliers.

The U.S. Federal Trade Commission and a bipartisan group of state attorneys general, including Arizona AG Kris Mayes, have also contested the merger.

Judge Andrew Luxen granted Weiser’s request for a preliminary injunction, preventing the companies from completing the merger before the court’s decision.

“The court finds there is a reasonable probability that the state will prove its claims against the defendants at trial,” Luxen stated in his order.

Preliminary injunction hearings were scheduled for Aug. 12. However, the companies agreed to the temporary halt to conserve resources, with the trial set for fall.

“I am pleased that Kroger and Albertsons agreed to pause their merger plans until the court’s ruling,” Weiser said, emphasizing the positive impact on shoppers, workers, and suppliers.

Kroger, based in Ohio, runs over 2,700 stores, while Idaho-based Albertsons operates more than 2,200. Opponents fear the merger could raise prices and reduce wages and bargaining power for workers.

Last month, the companies proposed selling 579 stores, including 91 in Colorado, to C&S Wholesale Grocers to address antitrust worries. Critics argue C&S, currently operating just 23 stores, lacks the capability to manage these new stores effectively.

“We cannot entrust our grocery stores to the untested and inexperienced C&S Wholesale Grocers,” stated Kim Cordova, President of United Food and Commercial Workers Local 7, representing over 23,000 workers in Colorado and Wyoming.

Weiser’s investigation also revealed alleged collusion between Kroger and Albertsons during a 2022 strike by UCFW Local 7 workers, including “no-poach” agreements.

The trial is set to begin on Sept. 30. “My office looks forward to proving that this merger will harm competition and affect food prices, jobs, and consumer choice,” Weiser said.